NSE Reverses Course, Decides to Retain Zee Entertainment in F&O Segment
Oil Slips as Dollar Firms and Russia Pipeline Halt Limits Supply
Oil prices slipped on Monday as the U.S. dollar strengthened and a halt of the Druzhba pipeline from Russia limited supply. The halt of the Druzhba pipeline, which carries crude from Russia to Europe, has disrupted supplies from the world’s second-largest exporter and caused a price spike.
Brent crude, the international benchmark for oil, was down 0.4% at $63.32 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 0.3% at $59.66 a barrel. Both benchmarks have risen more than 10% this year.
The dollar rose against a basket of six major currencies and was up 0.2%. A stronger dollar makes oil and other commodities priced in the greenback more expensive for holders of other currencies.
Russia Pipeline Halt
The halt of the Druzhba pipeline has caused a supply crunch and increased prices. Russia has halted the flow of crude through the Druzhba pipeline, which carries almost 2 million barrels per day (bpd) of crude from Russia to Europe after a contamination incident was discovered. The incident has caused a supply disruption that could last for weeks.
The pipeline is a major source of oil for European refiners, and the halt has caused a price spike in Europe and a scramble for supply. As a result, European refiners are now seeking alternative sources of crude, including from the United States, Canada, and the Middle East.
US Stocks Open Higher After Worst Weekly Selloff of 2023
U.S. stocks opened higher on Monday as investors bought beaten-down shares after the main benchmarks suffered their worst weekly selloff of the year on worries of aggressive interest-rate hikes. The Dow Jones Industrial Average rose 89.24 points, or 0.27%, at the open to 32,906.16. The S&P 500 opened higher by 22.32 points, or 0.56%, at 3,992.36, while the Nasdaq Composite gained 122.25 points, or 1.07%, to 11,517.19 at the opening bell.
SoftBank, Ant Seek to Sell Paytm Stake via Open Market
China’s Ant Group and Japan’s SoftBank Group Corp are seeking to sell their stakes in Indian digital payments firm Paytm in the open market, the Economic Times reported on Monday. The companies had approached Bharti Airtel founder-chairman Sunil Mittal to sell their stakes in Paytm’s parent One 97 Communications. Still, those talks did not make much headway, E.T. reported, citing people familiar with the matter.
SoftBank, Ant Group, Paytm, and Bharti Airtel did not immediately respond to Reuters’ request for comments. However, a secondary sale to financial investors in the open market through a block deal is still a possibility, the Economic Times reported.
Ant has a nearly 25% stake in Paytm, while SoftBank owns about 13%, according to exchange data. Paytm has been pressured to turn profitable since its dismal listing in late 2021.
NSE Withdraws Decision to Remove Zee Entertainment from F&O Segment
The National Stock Exchange has withdrawn the decision to exclude Zee Entertainment Enterprises from the futures and options segment. “Further, in addition to existing contracts with expiry months of March 2023 and April 2023, the futures and options contracts with May 2023 expiry shall be made available for trading w.e.f February 28, 2023,” the exchange said in a circular.
The move comes after the National Company Law Appellate Tribunal (NCLAT) on Friday granted interim relief to the media firm by staying the bankruptcy proceedings against it. However, despite getting relief from the NCLAT, shares of Zee Entertainment continued their downward move. On Monday, the stock ended nearly 7% down on the NSE at Rs 182.55.
Last week, the exchange issued a circular stating the decision to exclude the stock from the derivatives segment following the bankruptcy board’s move to admit the media company for insolvency proceedings.
How the E.U. Ban on Russian Crude Affects Oil Flows
Russia’s crude oil exports to the European Union in January fell to around 600,000 barrels per day (bpd) from 1 million bpd in December as seaborne volumes dried up except for Bulgaria, International Energy Agency (IEA) data showed.
The E.U. imposed a ban on seaborne Russian crude oil imports from December 5, and G7 countries set a price cap on Russian seaborne exports at $60 per barrel over Russia’s invasion of Ukraine in February 2022.
Related Facts
- Brent crude was down 0.4% at $63.32 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 0.3% at $59.66.
- The dollar rose against a basket of six major currencies and was up 0.2%.
- Russia has halted the flow of crude through the Druzhba pipeline, which carries almost 2 million barrels per day (bpd) of crude from Russia to Europe.
- The pipeline is a major source of oil for European refiners, and the halt has caused a price spike in Europe and a scramble for supply.
- Russia’s crude oil exports to the European Union in January fell to around 600,000 barrels per day (bpd) from 1 million bpd in December.
Key Takeaway
Oil prices slipped on Monday as the U.S. dollar strengthened and a halt of the Druzhba pipeline from Russia limited supply. The halt of the Druzhba pipeline has caused a supply crunch and increased prices. U.S. stocks opened higher on Monday as investors bought beaten-down shares after the main benchmarks suffered their worst weekly selloff of the year on worries of aggressive interest-rate hikes. China’s Ant Group and Japan’s SoftBank Group Corp seek to sell their stakes in Indian digital payments firm Paytm in the open market. The National Stock Exchange has withdrawn the decision to exclude Zee Entertainment Enterprises from the futures and options segment. Russia’s crude oil exports to the European Union in January fell to around 600,000 barrels per day (bpd) from 1 million bpd in December.
Conclusion
Oil prices were down on Monday as the U.S. dollar strengthened and a halt of the Druzhba pipeline from Russia limited supply. U.S. stocks opened higher as investors bought beaten-down shares after the main benchmarks suffered their worst weekly selloff of the year. China’s Ant Group and Japan’s SoftBank Group Corp seek to sell their stakes in Indian digital payments firm Paytm in the open market. The National Stock Exchange has withdrawn the decision to exclude Zee Entertainment Enterprises from the futures and options segment. Russia’s crude oil exports to the European Union in January fell to around 600,000 barrels per day (bpd) from 1 million bpd in December.
